Categories AlphaGraphs, Earnings, Technology

Advanced Micro Devices posts in line Q3 profit but stock dips

Semiconductor firm Advanced Micro Devices (AMD) reported a 67% jump in earnings for the third quarter helped by higher revenue as well as lower cost of sales. The bottom line came in line with analysts’ expectations. Following this, the stock plunged over 21% in the after-market session.

Net income for the quarter climbed 67% to $102 million or $0.09 per share. Non-GAAP earnings increased 44% to $0.13 per share.

Revenue rose 4% to $1.65 billion. This was driven by higher client revenue in the Computing and business segments. The latest quarter revenue included IP-related revenue, of which $86 million was related to its THATIC joint venture.

AMD third quarter 2018 Earnings Infographic
Advanced Micro Devices Q3 2018 Earnings Infographics

Looking ahead into the fourth quarter, the company expects revenue of about $1.45 billion, plus or minus $50 million, an increase of about 8% year-over-year, and non-GAAP gross margin to rise to about 41%. This forecast is driven by the sales growth of Ryzen, EPYC and datacenter GPU processor sales.

Computing and Graphics segment revenue was $938 million, up 12% year-over-year. The growth was driven by strong sales of Ryzen desktop and mobile products, partially offset by lower graphics revenue. Blockchain-related GPU sales in the third quarter were negligible.

AMD defies crypto blues; stock jumps as Q2 results beat street view

Client processor average selling price was higher from the previous year quarter, primarily due to higher desktop and mobile processor average selling price. GPU average selling price decreased from last year, due to lower GPU channel sales.

Enterprise, Embedded, and Semi-Custom segment revenue declined 5% to $715 million. This decline was due to lower semi-custom product and IP-related revenue, partially offset by higher server sales.

Shares of AMD ended Wednesday’s regular session down 9.17% at $22.79 on the Nasdaq. The stock has risen over 59% in the past year and over 121% in the year so far.


Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

MU Earnings: Micron’s Q4 profit declines but beats estimates

Micron Technology Inc. (NASDAQ: MU) Thursday said its fourth-quarter profit declined from last year, hurt by a sharp fall in revenues. Earnings, however, beat the market’s projection. On an adjusted

What are Philip Morris’ (PM) anticipations for the near term?

Shares of Philip Morris International Inc. (NYSE: PM) were down 1% on Thursday. The stock has dropped over 9% year-to-date. Although the tobacco industry has felt the pinch of inflation,

Key highlights from CarMax (KMX) Q2 2023 earnings results

CarMax, Inc. (NYSE:KMX) reported second quarter 2023 earnings results today. Net revenues rose 2% year-over-year to $8.1 billion. Net earnings were $125.9 million, or $0.79 per share, compared to $285.2 million,


Add Comment
Viewing Highlight